Depending on how one defines “normal,” commercial real estate financing is back to it.
Today’s CRE debt market bears little resemblance to the markets of the past. Instead of being marked by a shortage of lenders, all of whom were unrealistically conservative, the market is now normalized. Multiple sourced of capital compete for the buyer’s dollar at rates and terms that, while more conservative than in the height of the last decade’s bubble, are still favorable.Read more

Defeasance is an old legal term for a set of conditions in a document that, when fulfilled at a future date, render the effect of the document null and void. If something is defeasible, it is capable of being voided. If something is indefeasible, it cannot be voided. For example, the Declaration of Rights of the Pennsylvania Constitution adopted in 1776 states:Read more

The “Defeasance Collateral” Definition In the past few years, some lenders’ CMBS loan documents have been revised to allow the defeasance collateral to include agency securities. However, other lenders have been slow to adopt such a change even though REMIC regulations allow it.